Venezuela offered outside OPEC countries to cut oil production

Venezuela has offered oil producers that are not members of OPEC, to cut production by 400-500 thousand barrels./day. This was told to journalists by the Minister of oil of Venezuela, Eulochio del Pino, reports Reuters.

The Minister added that he discussed this proposal with the Minister of energy Alexander Novak. The meeting was held on Tuesday, October 25, in Moscow. He said OPEC in late November, expects to conclude an agreement on the stabilization of the production with countries that are not included in the cartel.

“Countries outside of OPEC, produces about 16 million barrels./day. We invite countries outside of OPEC to coordinate their efforts to reduce production by about 400-500 thousand barrels./day, that is about half from a reduction in OPEC,” said del Pino (quoted by “Interfax”).

“Production of 16 million barrels./day mining, Russia, Oman, Kazakhstan, Azerbaijan, Colombia, Mexico, Bahrain, Egypt,” said the Venezuelan Minister. He also said that the proposal would be discussed in Vienna at the technical experts meeting on 28-29 October. In addition to the OPEC meeting, he said, invited Russia, Kazakhstan, Azerbaijan, Oman, Egypt, Bahrain, Bolivia, Colombia, Norway, Canada, and Mexico. Another technical meeting is planned in mid-November, said del Pino.

Russia and other countries were willing to freeze oil production at current levels in April of this year, the Minister said. From that time they greatly expanded oil production and, therefore, the proposal for production cuts effectively means a freeze in the spring production levels, said the Minister of oil of Venezuela.

The representative of the Russian Ministry of energy comments from RBC refused.

In September of this year, OPEC for the first time since 2008, agreed to reduce the level of oil production. The Minister of oil of Iran Bijan Zanganeh talks in Algeria said the cartel agreed to produce about 700 thousand Barr./a day less. Against this background, the price of Brent crude oil jumped by nearly 6%.